Activity in the manufacturing sector has slipped back as production weakens and consumers curb spending.
The BNZ-Business New Zealand Performance of Manufacturing Index shows activity in the manufacturing sector fell two points to 48.8 in November.
A reading below 50 indicates the sector is contracting.
Business New Zealand executive director of manufacturing Catherine Beard says activity has been flat for the last six months, much of which is due to lack of consumer confidence and demand.
However she said some sectors, such as food manufacturing, have enjoyed robust activity.
She said most manufacturers believe the gathering pace of rebuilding in Christchurch and home building in Auckland will underpin stronger growth next year.
Ms Beard said other countries have bigger challenges than New Zealand.